Curtain Raiser Project Berlin

India Investment Series B - Study Consumer Brands

To understand consumer brands and D2C landscape more closely , Accurize conducted an extensive study on 53 consumer brands/companies that successfully raised Series B funding within last decade. The study covered various analytical aspects to uncover key factors to provide a roadmap for emerging consumer companies aiming to attract Series B capital , and analysis is mostly aligned to support Project Berlin.

Below is a summary of the key findings:

1. Total funding of US$ 652 million raised amongst 53 companies, with avg cheque size US$ 12 million

2. Chart illustrates Deal count & fundraising range at Series B, $5-20Mn stays sweet spot.

3. Consumer brands' Series B investment activity peaked in 2022 after a decade of growth but has since declined due to a more cautious VC firms outlook.

4. On average, it takes 6 business years from a company's founding to close Series B round. Longest time to close Series B funding being 16 yrs for Heads Up For Tails, followed by Bombay Shirt Co 12 years, while Foxtale achieved it in just 2 years.

5. 41 companies out of 53 analysed, have a celebrity brand ambassador or endorsement, though specific terms of celebrity associations are not covered (Paid , Equity or Saar).

6. 43 companies out of 53 analysed , have established significant consumer love, as evidenced by a huge Instagram reflecting acceptance of brand's language. Highest following for Bewkoof 1.7Mn , followed by Plum 852k & Give 750k. For reference purpose with Project Berlin Neemans 294k , Sluurp Farms 284k , Mokobara 234k and parenting brand Mylo 152k followers.

7. 48 companies initially began with a D2C focus, nearly all have pivoted to omni channel strategies and demonstrated product-market fit, identified primary revenue channels with sound unit economics that can work at scale.

8. Beauty and skincare, fashion , and food emerged as the leading categories with 55% contribution & raised US$ 348 million.

9. The average reported revenue at closure of Series B $20Million, for reference purpose with Project Berlin we have reporting early revenue companies that were able to raise successfully.

10. Equity dilution at Series B range between 20-30%, so for benefit of Project Berlin we can assume successful company valuation 3.5-5x of fundraise amount.

Team Accurize will deeply analyse relevant companies CAP tables, balance sheet & reported financial to publish information during Project Berlin preparation process.

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